Small-Cap Stock Surges 13.5% on 400+ Major Orders
Shares of Roto Pumps Ltd surged 13.5% to Rs 320 on December 9, 2024, driven by 400+ major orders for its solar-powered submersible pumps. Get detailed insights and investment guidance with Liquide.
Stocks in News | Roto Pumps Ltd has been making waves in the stock market, with its shares surging 13.5% on December 9, 2024, reaching a three-month high of Rs 320. Though it closed at Rs 304.35 on the National Stock Exchange (NSE), the stock's intraday spike marks the highest gain in five months.
Despite facing a temporary dip between August and November 2024, Roto Pumps has made a stunning comeback in December, gaining 18% within the month alone.
What’s behind this impressive surge? The catalyst appears to be a significant business development that has captured investors’ attention: Roto Pumps’ subsidiary, Roto Energy System, has secured large orders for its solar-powered submersible pumps.
Roto Pumps Stock Surges on Major Solar Pumping Order
The main catalyst for the stock’s impressive uptick is the announcement of over 400 orders for Roto Pumps’ solar-powered submersible pumps, branded as “Roto Rudra.” These orders, spanning across key markets like Australia, South Africa, and India, highlight the increasing demand for renewable energy solutions, particularly in agricultural and water management sectors.
Roto Pumps is positioning itself as a leader in the solar pumping space. Their solar-powered systems offer efficient, sustainable water solutions that support irrigation, livestock, and gardening needs. For instance, one model can pump water from a 200-meter borewell using just 1,500 Wp of solar power—demonstrating impressive energy efficiency.
Global Demand for Solar Pumps: Expanding Reach
Roto Energy System’s solar-powered pumps are not only gaining traction in India but also catching the eye of international markets. The company has already secured substantial orders abroad:
- South Africa: 100 units of Roto Rudra solar-powered pumps for agricultural and industrial applications. These pumps will feature advanced Helical Rotor and Centrifugal Pumps, equipped with 10-pole motor pump sets, controllers, and remote monitoring capabilities for enhanced reliability.
- Australia: Another 100 units will be supplied for agricultural purposes, supporting local farms with efficient water pumping solutions.
- India (Chhattisgarh): The company will deliver 100 units of its RSSH 2.0-C model, designed to pump over 15,000 litres of water per day at a head of 90 meters.
- Maharashtra: 100 units of the RSSH 1.2-C model will be provided, each capable of pumping 7,800 litres of water daily at 120 meters using cutting-edge 1,000 Wp Monoperc Solar Modules.
About Roto Pumps Ltd: A Leading Name in Pumping Solutions
Founded in 1968, Roto Pumps Ltd has established itself as a leader in manufacturing progressive cavity pumps in India. The company serves a diverse range of industries, including wastewater management, chemicals, oil & gas, food & beverages, and more recently, the renewable energy sector.
A Glimpse into Roto Pumps’ Financials
- Impressive Track Record: Over the past three years, Roto Pumps has delivered a compound annual growth rate (CAGR) of 29% in both net profit and revenue, indicating a solid growth trajectory.
- Q2FY25 Results: While the company’s net profit declined by 10%, operating revenue grew 4% compared to the year-ago quarter.
- Strong Return Ratios: Return on Equity (ROE) stands at 22%, and Return on Capital Employed (ROCE) is 25%, highlighting efficient use of capital and strong profitability.
- Debt Management: The company’s interest coverage ratio of nearly 13x shows a robust financial position and its ability to manage debt efficiently.
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